Japan’s multinational Toshiba is expected to cut down almost 7,000 jobs after it faced an accounting scandal of approximately 1.3$billion. The organization is also likely to shutdown its television manufacturing plant in Indonesia.
The conglomerate told that it will slash almost 6,800 jobs in the lifestyle business section alone, by starting early retirement plans, relocating its employees and starting other structural modificat
ions. Due to such changes the multinational firm is said to experience a net loss of 4.53$billion(550 billion yen) by the end of the financial year.
In August, Toshiba accepted that it had wrongly interpreted its profit of 2008 and 2009 by 155 billion yen. The company has also estimated last financial year’s net loss at 37.8 billion, in order to reflect more costs and conservative estimates on procedures. Toshiba’s stocks have deteriorated to about 40 per cent since the problems in its accounts started to arise in April.
Experts have told that the streamlining of the organization is very essential. The company too, in a statement said, “By implementing this plan, we would like to regain the trust of all stakeholders including shareholders and transform ourselves into a robust business.